French automaker Renault plans to reintegrate its Ampere electric vehicle and software operations as CEO Francois Provost reverses a strategy that sputtered due to lower-than-expected EV demand.
The manufacturer is meeting with labour unions on Wednesday to discuss the reorganisation that will help Renault simplify its structure and speed up decision-making, it said.
In 2024, former boss Luca de Meo scrapped his plan to list Ampere on the stock market amid cooling demand for battery-powered cars and poor performance of other EV stocks.
Renault is not the only European manufacturer revising its EV plans at a time of turmoil for the car industry.
Stellantis has shifted away from an all-electric push and is bringing more hybrid models to market.
Volkswagen and Porsche have also adjusted their strategies as demand for battery technology remains uneven and Chinese manufacturers expand in Europe with low-cost offerings.
Renault initially had big plans for Ampere, with De Meo seeking a valuation of as much as €10 billion (around R190 billion).
While that proved unrealistic, the unit’s technology focus did help Renault speed up EV development times, with models like the Renault 5 E-Tech hatchback debuting on time and bolstering the group’s product offering.
It also helped Renault ink partnerships with the likes of Qualcomm and Google.
As part of the reorganisation, Ampere will become an engineering centre for Renault, focusing on software and EVs.
Ampere’s hub of plants in northern France that make models such as the R5 and the Scenic will be folded back into the parent company.
Renault aims to complete the reorganisation by 1 July, with Provost due to present his new strategy this year.
Renault is accelerating its expansion outside of Europe and has set up a research and development hub in Shanghai that worked on the new Twingo EV.
The company is widening its focus to help produce drones for the French army.
Several Ampere executives have left the group in recent months, including the unit’s finance chief, Vincent Piquet, who was appointed CFO of French cable maker Nexans.
Loading ...
